Chinese imports-exports data weighs on European basic resources stocks

Holmen AB

08/08/2023 08:44

** STOXX basic resources index  .SXPP  falls 1.5%, the
second biggest faller among STOXX 600  .STOXX , as China's
imports and exports data fell more than expected in July,
pointing to slower trade activity
    ** Chinese exports contract 14.5% in July year-on-year, a
steeper than expected decline of 12.5%, while imports drop 12.4%
    ** "The much hoped for recovery in Chinese activity has not
materialised, dragging on miners and resources linked stocks",
Stuart Cole, chief macro economist at Equiti Capital says 
    ** "Not only does this remove a large source of demand for
raw materials, etc., it also paints a worrying picture of
slowing global growth as China was such a key player in the
global markets", Cole adds
    ** The index touches its lowest point in a little less than
a month, heading for a biggest single-day drop in a week
    ** Among single names, Glencore  GLEN.L , down over 3%, is
the biggest drag on the index due to its core profit decline,
while SSAB  SSABa.ST , Anglo American  AAL.L , ArcelorMittal
 MT.AS , Holmen  HOLMb.ST  fall around 2%
    

 (Reporting by Matteo Allievi)
 ((Matteo.allievi@thomsonreuters.com))